Sugarcane growers in Uttar Pradesh will not supply cane to mills below last year’s price of Rs 280 per quintal, which is Rs 100 more than what the industry is willing to pay, a farmers’ body said today.
UP is the country’s second largest cane producer.
“We got an average price of Rs 280 per quintal in 2009-10 sugar year (October-September). We will not supply cane to sugar mills below that price,” said Awadesh Mishra, the President of Chairman’s Association of Cane Societies in UP.
When asked that they are demanding high price considering low prices of sugar, he said: “Why growers should participate in losses, when mills do not share their profit with us”.
Retail sugar prices have declined by 40 per cent since mid-January to Rs 30 per kg in Delhi. The ex-mills prices are ruling below Rs 25 per kg.
In 2009-10 crushing season, sugar mills paid high prices to farmers as sugarcane production was low.